USAID. MISSION TO LIBERIA
Liberia : economic support fund
Economic Support Fund grant to provide the Government of Liberia (GOL) with immediate balance of payments support and to encourage continued progress in the implementation of economic stabilization policies.
1983
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Abstract
A total of $35 million will be disbursed to the GOL in four tranches during FY 1984. Disbursements will be conditioned on the GOL"s demonstrated progress towards implementing measures in support of a 9/83 International Monetary Fund (IMF) standby agreement. Specifically, these include, prior to the disbursement of each tranche, submission to USAID/L of: (1) quarterly reports on payroll costs, extra-budgetary expenditures, subsidies to public corporations, and monthly debt service payments; and (2) a quarterly plan showing proposed foreign exchange expenditures to be made by month to all creditors of the public sector. Other specific conditions include, inter alia: (1) prior to the first tranche, submission of plans for a complete census of the GOL"s external debt and improved tax collection procedures; (2) prior to the second tranche, submission of a comprehensive, pro forma budget for 1984-5 and a separate off-shore funds budget, and evidence that the GOL will not execute or enter into contracts for construction projects or the purchase of capital equipment financed with public funds but not included in the budget; and (3) prior to the third tranche, GOL review of its Public Investment Program in order to identify priority investments needed for medium- to long- term economic recovery, and submission of a debt service schedule for the period of 7/84-6/85 showing by month the amounts due to all public sector creditors. Special convenants include that the GOL will: support measures to increase the effectiveness of revenue generation, including increased cooperation and data sharing among Ministries that gather information on taxpayers; review its monetary policies and encourage private savings; assure provision of adequate and timely budget allowances of funds in 1983/1984 for the Special Elections Commission; and not exceed the IMF standby ceiling of $122.5 million for recurrent expenditures on personnel costs. There will be no requirements pertaining to counterpart funds, as local currency deposits to a special account would have the effect of requiring deficit financing by the GOL.
